Prime Minister Narendra Modi had announced a package worth Rs 20 lakh crore as a booster dose to the economy last week. Five days in a row, Finance Minister Nirmala Sitharaman has completely announced the full package from the press conference. The stock markets are open today and the markets are showing up in the red mark. The Sensex at the Bombay Stock Exchange (BSE) fell nearly 229 points to 30,869.
The market had previously shown disappointment
Before Friday last week, Nirmala Sitharaman had made a big announcement in two days for several sections including MSMEs, real estate, textiles, farmers, migrant laborers. But on Friday, it seemed that all these announcements did not encourage the stock market. That is why the Indian stock market remained well-off for the second consecutive day.
The Sensex at the Bombay Stock Exchange and the NSE Nifty closed down marginally on Friday in volatile trading. After a breakdown of more than 350 points during trading, the 30-share Sensex later lost significantly and finally closed at 31,097.73 points, down 25.16 points, or 0.08 percent. Similarly, the NSE Nifty declined 5.90 points, or 0.06 percent, to close at 9,136.85 points. The Sensex was down 544.97 points, or 1.72 percent, while the Nifty was down 114.65 points, or 1.23 percent, during the week.
Market after the first phase of relief
On Thursday, Finance Minister Nirmala Sitharaman had placed the details of the press conference tax relief package before the public. On this day, the BSE 30-share Sensex lost 885.72 points, or 2.77 percent, to close at 31,122.89. It had slipped to 1000 points during the trading. Similarly, the NSE Nifty lost 240.80 points, or 2.57 percent, to close at 9,142.75 points.
What is the reason for the disappointment?
If you look at the situation in the past few months, the stock market needs immediate relief for the boost. Investors were hopeful that the benefits would be directly benefited. The industry seemed to be given a big economic package directly. But the government’s two-day announcement seems to be that the business world is not going to get relief directly.
Afroz is a business reporter at GetIgnite with a focus on regulators, lawmakers, and institutions. He was previously a news, science, technology and community reporter and editor with The Daily Targum. His work has been featured in The Nation and referenced by The Washington Post, ZDNet, Gizmodo, NJ Advance Media, and The Philadelphia Inquirer.